They also assured employees that the company’s HR leaders would provide support to those transitioning out of the organization.
Impact on Marketing and Communications
The layoffs will primarily affect employees in the marketing and communications departments, as well as in the legal and finance divisions.
Paramount Global has been grappling with financial pressures, particularly in its cable TV business, which has been in decline. Last week, the company reported a significant shortfall in its second-quarter earnings, with total revenue falling to $6.81 billion, missing the expected $7.21 billion. This financial strain has prompted the company to seek $500 million in annual cost savings.
This is not the first time Paramount has resorted to layoffs. In February, the company reduced its workforce by 3%, despite a 3% increase in revenue growth attributed to its streaming and film businesses.
The contrast between revenue growth and workforce reductions highlights the challenging environment for the company as it seeks to balance profitability with maintaining a robust workforce.
